Auto insurance in Iowa is optional, but it is required for drivers to prove "financial responsibility." Having insurance is a good way to do that. People who plan to operate a vehicle in Iowa should know applicable insurance and driving laws. Knowing laws will prevent fines, accidents, and inconveniences related to traffic stops.
Auto Insurance in Iowa
Through auto insurance is not mandatory, it is recommended. Know the associated laws and make the best decision based on factual information. Responsible drivers cause fewer accidents.
State Specific Insurance Facts
• Suspended License Without Proof of Financial Responsibility. Automobile accidents with damages in excess of $1000 will result in a suspended license if the driver cannot prove financial responsibility.
• File a Report in 72 Hours.File a report within 72 hours with the Office of Services if the accident involves death or bodily injury. This report should be filed regardless of fault. This report is unnecessary if the accident was investigated by law enforcement. Both the owner and the driver should accept financial responsibility.
• Show Financial Responsibility. Drivers and owners must show that they are covered by automobile liability insurance. Financial responsibility can be given by posting cash or certified check to the Office of Driver Services.Other ways to be released from financial responsibility includes a waiver from the injured or damaged party or a court release from liability.
Insurance Fraud in Iowa
In Iowa, insurance fraud is deemed a felony and carries a sentence of up to five years in prison and a fine of $7,500. This strict penalty was implemented to prevent insurance fraud and the loan or selling of personal insurance information to another party.
Annually, Americans pay at least $80 billion or $950 per family because of insurance fraud. In general, the more insurance companies pay out for insurance fraud, the more expensive insurance becomes.
Alcohol Related Accidents in the State
n any given year, alcohol can account for 41 percent of car accidents in the state. In general, the number of accidents increase with higher BACs.
Unique Laws in Iowa
Nearly every state has a unique or bizarre law related to driving, and in Mount Vernon, Iowa, the police will emerge on the scene if Red Ryder is thrown onto the highway.
Did You Know? Unique Facts About Iowa Driving
Did you know that if you are driving an ice cream truck in Indianola, Iowa, it is illegal? Texting is also illegal in Iowa and could earn offenders a $30 ticket, but it will not be considered a moving violation.